OPTION
Option
In finance, an option is a contract which gives the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on or before a specified date. The seller incurs a corresponding obligation to fulfill the transaction – that is to sell or buy – if the owner elects to "exercise" the option prior to expiration. The buyer pays a premium to the seller for this right. An option which conveys to the owner the right to buy something at a specific price is referred to as a call; an option which conveys the right of the owner to sell something at a ...The above text is a snippet from Wikipedia: Option (finance)
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option
Noun
- One of the choices which can be made.
- The freedom or right to choose.
- A contract giving the holder the right to buy or sell an asset at a set strike price; can apply to financial market transactions, or to ordinary transactions for tangible assets such as a residence or automobile.
- A button on a screen used to select an action (often "menu option")
Verb
- To purchase an option on something.
- The new novel was optioned by the film studio, but they'll probably never decide to make a movie from it.
The above text is a snippet from Wiktionary: option
and as such is available under the Creative Commons Attribution/Share-Alike License.